--- description: Electricity prices in the UK have grown significantly in recent months. Find out why SMEs look to energy management software and green solutions. image: https://gdm-localsites-assets-gfprod.imgix.net/images/getapp/og_logo-94fd2a03a6c7a0e54fc0c9e21a1c0ce9.png title: SMEs look to energy management software to ease electricity costs --- # UK firms look to energy management software and green energy to ease costs Canonical: https://www.getapp.co.uk/blog/3382/energy-management-software-green-energy Published on 25/01/2023 | Written by David Jani. ![UK firms look to energy management software and green energy to ease costs](https://images.ctfassets.net/63bmaubptoky/11ITb5SJWLqyjYdiCfbHGJ/1cdbb9345456b1e0f9474bbfabeaf85d/11-GA-INTL-Header-Energy-Supply-Changes-Part-I-1200x630-DLVR.jpg) > As we saw in our first report looking at how small-to-medium enterprises (SMEs) are coping with higher electricity prices, managing a workplace’s energy supply requires more attention than ever. With that in mind, what impacts do software platforms for energy monitoring and renewable electricity sources have on alleviating these problems?  ----- ## Article Content As we saw in our first report looking at how small-to-medium enterprises (SMEs) are coping with higher electricity prices, managing a workplace’s energy supply requires more attention than ever. With that in mind, what impacts do software platforms for energy monitoring and renewable electricity sources have on alleviating these problems? In this articleCompanies expect energy prices to stay highEnergy management software is in higher demandMore businesses are looking towards renewable energy solutionsThe energy crisis is prompting businesses to actThroughout 2022, wholesale oil and gas prices skyrocketed. This has led to calls from businesses across the UK to accelerate the move to renewable energy production in the United Kingdom. In our own data, we also observed that 54% of businesses in our sample said they would reduce their energy usage in the wake of current price rises, showing that innovative solutions are needed.     In this second look into the effects of higher electricity costs, we’ve focused on how companies approach software and green energy to alleviate the current energy crisis. In doing so, we hoped to find out the extent that these options are used for improving control over a company’s electricity supply. We surveyed 388 UK SME managers and owners to learn more.Scroll to the bottom of the page to see our full methodology.Companies expect energy prices to stay high2022 was a year beset with higher energy prices and concerns about the scarcity of electricity for companies and households alike. The consumer prices index (CPI), a key measure of inflation, stood at 10.7% in December 2022, and this high percentage was driven by the costs of electricity, gas, and other fuels, according to the Office of National Statistics (ONS). Also, we saw in our first report that 85% of our sample business leaders had observed price rises and had seen energy prices grow by as much as 20% in some cases. Whilst prices rose dramatically in 2022, the question everyone wants to know the answer to is how long this is likely to affect small businesses in the medium-to-long term. One thing that was clear from our findings is that businesses don’t consider the hike in electricity prices to be a temporary blip. 71% agreed that high prices were here to stay. This view was shared by our respondents across the UK. Over 50% of participants in each one of the four nations agreed with the statement, ‘the increase in electricity prices is a problem that is here to stay’.However, this view was most commonly seen in Wales and England, where 81% and 72%, respectively, felt that higher wholesale electricity prices were a long-term issue. Both these figures were higher than the UK’s overall average.As we saw in our first report, almost three quarters (74%) of managers believe their employees’ welfare has declined due to the need to cut back on electricity. This exemplifies the knock-on effects that higher electricity prices can have and may continue to have as businesses look to curtail energy costs longer term.    Energy management software is in higher demandA large proportion of companies in our sample agree that high electricity prices are not going away in the near future. This means that strategies to find cheaper energy sources or manage demand are necessary.One way that electricity usage can be brought under control is by using energy management system software. We, therefore, asked our sample if they were using this as a measure to bring energy consumption down.How does energy management software work?Energy management software is used by businesses for energy monitoring, tracking energy efficiency, and providing insights on how companies can better manage their power supplies.These tools offer features such as the following: Automated alertsBuilding information modelling (BIM) / computer-aided design (CAD) integrationData loggingEmissions monitoringKey performance indicator (KPI) settingReportingWe observed a mixed picture when we asked respondents if they were currently using energy management software. In total, 35% said yes: 13% reported using this technology for a long time, whilst 22% had started using it as a direct response to the hike in electricity prices.It was also interesting to note that Scottish companies seemed to have a noticeably higher long-term usage of energy monitoring systems than other nations. Compared with the UK average of 13%, the number of respondents who said their companies had been using software for energy management for a long time was greater in Scotland (18%) and lower in England (12%) and Wales (10%).Did you know?The British Chamber of Commerce (BCC) recommends using smart meters to help collect data on energy usage. This can help companies save money by giving them better visibility of their electricity supply and consumption data whilst avoiding the excess costs of estimated bills. These tools can also be paired with energy management software to give better insights into usage.Whilst less than half of our overall sample currently use energy management software, we did observe interest in these tools as a whole. Over half (54%) of the entire survey group said that despite not using energy management systems today, they were curious about doing so in the future.There are many reasons that SME owners and managers could be interested in using these tools. To find out more about where the benefits lie in these systems that manage energy usage, we asked participants who currently use the software what advantages they’ve observed.Rather unsurprisingly, most respondents (38%) said one of the biggest benefits was that it helped them achieve energy savings. The tools also proved beneficial in improving sustainability (32%) and allowing business owners and managers to collect energy data to understand the parts of their production process that were using the most electricity (29%).Additionally, some less common reasons included optimising energy demand (26%), creating reports about how energy is used (25%),  and tracking spending in real-time (22%). It was clear that the most popular features of energy management software were the ones that gave users the ability to map out and control exactly how their companies used energy at this crucial time when every unit of electricity needs to be considered carefully.What are the factors that interest non-users in energy management systems?Whilst we learned a lot from how companies were using energy management software to improve their processes, we also hoped to understand why owners and managers not using the software had chosen not to do so before. We also wanted to learn more about why they were now considering them as an option.We put these questions to members of the 54% group of our sample who said they were interested in using software to optimise electricity usage in the future.  When we investigated why businesses were not using them, 48% said they hadn’t realised how useful they would be, and 42% hadn’t considered their use as important until now. 27% also said that they had considered them too expensive. The main reason employers and managers were now interested in using energy management software was very similar to those using the tools already. Saving energy motivated 39% of this group, 38% wanted to optimise energy demand, and 34% wanted to track energy spending in real time.Key takeaway: These results show that managers and owners are increasingly interested in energy management systems as an energy-saving measure. The analytical and control tools these programs offer are especially useful in the current climate and are a significant factor in why many members of our sample group were using them or looking to use them.More businesses are looking towards renewable energy solutionsRenewable or 'green' energy sources offer another avenue for businesses to obtain a more affordable electricity supply. Currently, the UK’s energy production mix relies heavily on natural gas. However, greener options such as wind, solar, hydro, and nuclear power now make up a bigger part of the total picture.    2022 saw prices spike, especially in carbon-based energy sources such as gas and oil. This was partially due to a significant drop in Russian energy imports to Europe following the invasion of Ukraine. Since then, renewables have been touted as a solution to this energy insecurity.  There is also public pressure on businesses to accelerate the move away from carbon emissions by switching to renewable sources. We saw this trend reflected in our circular economy survey, where consumers wanted to see more companies adopt green energy sources. The current crisis, therefore, offers an interesting opportunity for businesses to decarbonise. To that end, we wanted to see if our participants were also using renewable energy to shore up their own electricity supply or were interested in starting to use it. The results showed a similar pattern to the one we saw with energy management software.Currently, just over a third of the businesses in our sample obtain at least part of their electricity from renewable sources. We also saw that nearly half of the group didn’t yet use renewable energy but were interested in starting.Did you know: Out of the four nations in the UK, English businesses in our sample used renewable energy the most in their energy mix. 37% of English companies obtained part of their energy from renewable sources, followed by Wales (33%), Northern Ireland (31%), and Scotland (29%). Despite placing last in these rankings, Scottish companies we surveyed were among the most eager to adopt renewables, with 55% of companies looking with interest at starting to use them.  However, those using it were unequivocal about their plans to increase its use. 88% of those already using renewable sources said they planned to increase their use in the future.Nevertheless, most of the people we spoke to (61%) definitively don’t yet use renewable energy sources. There were a few reasons stated for why this was the case by the 49% of our sample that was not using it already but was interested in starting. The most common reason for not using renewables at the moment was that many participants hadn’t considered the need before. Therefore, we can see some of that interest in cleaner electricity is very clearly a consequence of the energy crisis.We also observed the second most common reason was that managers and owners didn’t know how to switch to more renewable systems. This was followed by worries about the expense (29%) of making the change. This was also the case for respondents who were not interested in using renewable energy systems. The most common reasons for not wishing to pursue this path were expense (38%), a lack of necessity (31%), and a lack of local suppliers (28%).Tips for SME:Many schemes are running across the UK to help businesses transition to cleaner energy sources. These can include grants or equipment to help companies move away from gas and oil and reduce energy usage.Local and national programmes funding initiatives for a green energy transition can be found on the Ofgem website. Firms can also find local installers of renewable and efficient energy systems via YouGen, an independent advice platform for green energy programmes.   Companies should also reach out to their local councils to see if funding is available in their regions in addition to national schemes.The energy crisis is prompting businesses to actOur survey data shows that businesses are strategising many different ways to get around the problems caused by higher electricity prices and concerns about energy supply in the UK. As we saw in part one of this report, significant price increases have affected many companies, impacting company performance. In part two, we also learned how companies are using software and energy management software to get around these challenges.In this second report, we highlighted the following key findings:71% of UK companies expect electricity prices to stay high 54% are looking at energy management software with interest49% of our sample are interested in obtaining at least part of their electricity from renewable sources88% of current users of renewable energy are looking to increase their use of it in the future2022 was a challenging year for business energy usage, and this situation is likely to continue into 2023 and beyond. However, companies are finding relief in new renewable energy sources and efficiency-driving energy software to confront these difficulties. Looking for energy management software? Check out our catalogue. ## Disclaimer > MethodologyThe data for GetApp’s Electricity Insecurity Survey was collected between October to November 2022 and comprises answers from 388 participants. We selected our survey sample based on the following criteria:UK residentsOwners, executive managers, or senior managers of SMEs (companies with 2-250 employees)Working in companies where a significant portion of the employees regularly attend a physical workplace/office ## About the author ### David Jani David is a Content Analyst for the UK, providing key insights into tech, software and business trends for SMEs. Cardiff University graduate. He loves traveling, cooking and F1. ## Related Categories - [Accounting Software](https://www.getapp.co.uk/directory/236/accounting/software) - [CRM Software](https://www.getapp.co.uk/directory/230/crm/software) - [ERP Systems](https://www.getapp.co.uk/directory/322/enterprise-resource-planning-erp/software) - [Human Resources Software](https://www.getapp.co.uk/directory/256/human-resources/software) - [Project Tracking Software](https://www.getapp.co.uk/directory/1457/project-tracking/software) ## Related Articles - [How to create a video marketing strategy as an SME](https://www.getapp.co.uk/blog/2679/how-to-create-a-video-marketing-strategy) - [Online meeting platforms are the most purchased software solution since the start of COVID-19](https://www.getapp.co.uk/blog/1909/online-meeting-platforms-are-the-most-purchased-software-solution-since-the-start-of-covid-19) - [Digital revolution in the restaurants and bars business](https://www.getapp.co.uk/blog/2533/bars-and-restaurants-digital-revolution) - [Diversity and inclusion in the workplace: How to make a start](https://www.getapp.co.uk/blog/2663/diversity-and-inclusion-in-the-workplace-how-to-make-a-start) - [4 legal case management software platforms for law firms](https://www.getapp.co.uk/blog/2751/legal-case-management-software-solutions-law-firms) ## Links - [View on GetApp](https://www.getapp.co.uk/blog/3382/energy-management-software-green-energy) - [Blog](https://www.getapp.co.uk/blog) - [Home](https://www.getapp.co.uk/) ----- ## Structured Data